We’ve all heard and read about the alarming 80% rate of small businesses that fail in their first 18 months.
It’s been reported by many sources including Bloomberg, the leader in reporting financial and business information
So when I read an article the other day that said 90% of info-marketing businesses fail, it upset me.
I thought to myself, “but why?” This is a formulaic business that anyone can do successfully.
My next thought was… “What can we learn from the businesses that have crashed and burned?”
From years of experience from both running my own businesses and also working with and training hundreds of business owners and info-marketers to build successful, long-term businesses, I have found three main things—that when missing, inevitably shorten the life of the business and cause failure.
I’m not talking about the typically things that you see listed such as running out of money, no business background, no clear unique selling proposition, and so forth. The following are specific to why info-marketing businesses fail, and more importantly what you can do to make sure you don’t experience the same fate.
Reason #1: Inadequate Marketing Research. According to Robert Skrob, President of the Info-marketing Association, the #1 reason he sees info-marketing businesses fail is inadequate research.
Solution: Don’t assume you know everything you need to know about your market. Just because you’ve been living in an industry for a long time doesn’t necessarily mean you don’t need to do additional research.
Thoroughly research your market. Interview potential customers to find out what they want and how they want it delivered. For example, do they prefer to receive your information in a video format or at a live seminar? The answer may surprise you and if you skip the research, you may end up wasting time and money creating the wrong product for your niche.
Reason #2: No continuity income. Continuity income is money you receive on a continual ongoing basis. For example, a membership program where people pay $59 each month for a newsletter. Too often businesses rely on a single sales model—meaning each month they start over selling their programs, books, seminars, etc. The result: until they sell something, they aren’t making any money.
Solution: Create continuity programs so that you start each month with customers already purchasing your products—in other words you have guaranteed income.
Not only do you have consistent income that provides you with cash flow to pay the bills, but as your customer base grows, so will the number of people participating in your continuity programs. This means your income will grow. Plus, because your continuity income is paying the bills, when you hold an event or have a big promotion, you’ll be able to pull out the money you make from it in profit instead of having to use it to pay bills. GKIC introduces success-minded business owners to their gold membership program by offering a two-month free trial.
Reason #3: Random Marketing Process. Too many businesses have no marketing systems in place. They run a campaign or promotion, get some customers, fulfill their orders and then have to start over again. Or they only have part of the system in place—such as the sales letter, but no system to continually attract prospects to it. Or no follow-up system.
Solution: If you want to experience a thriving, successful info-marketing business, and truly unlock the freedom and info-marketer lifestyle you dream of, then pay close attention. The secret is to build an automated marketing process.
This process includes marketing systems that continually attract new customers and feed them into a sales funnel that shows customers how you can solve their problems and then invites them to make a purchase.
After they’ve purchased from you, another sales system invites them to make additional purchases from you, including joining your continuity program.
One thing to note, while you can, in essence, create these once and let them run on auto-pilot, you’ll also want a system to track and monitor your results.
It’s also a good idea to use different systems along with testing new ones.
When you do the marketing research, put programs in place to generate continuity income and build an automated marketing process, you’ll have the three key factors that drive a long-lasting, mature and highly successful info-marketing business.
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